Sweden moving closer to becoming a cash-less nation

People are rapidly moving away from using cash

November 18, 2018 21:15

S. Lukanova

Source:
Pixabay

Sweden is rapidly moving away from using cash as payment method and the tendencies of cashless payments to increase are beginning to make state banks worry about their role. A central bank supplies the nation with bank notes and coins but if people stop using cash they will have to inevitably rely on private institutions to govern their finances. This will put the central banks out of their role.

Therefore, central banks are now trying to think of ways to design a digital currency, the e-krona. However, this is a relatively new idea and has not yet been thought in details and possible consequences haven't been investigated. Still, many central banks have interest in exploring the issue. But there will definitely be consequences for the financial system.